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NEW QUESTION: 1
Click on the Exhibit Button to view the Formula Sheet. Which of the following are quoted in terms of a yield-to-maturity?
A. BA
B. USCP
C. Treasury bill
D. ECP
Answer: D
NEW QUESTION: 2
According to the CAPM, the beta of a risky asset depends upon:
A. all of the above
B. the return expected by investors for holding the risky asset
C. the risk-free rate and the risky asset's market risk premium
D. covariance between the market portfolio and the risky asset; and the variance of the market portfolio
Answer: D
Explanation:
Explanation
The beta of a risky asset is determined solely by the covariance between the asset and the variance of the market portfolio. Recall that = covariancex, y / variancex, where x is the market portfolio and y is the risky asset. Choice 'c' is the correct answer.
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